QUESTION #1 CHAPTER #7 Distributions From Mutual Funds (9 Marks) Peter has bought 1,000 units in...
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QUESTION #1 CHAPTER #7 Distributions From Mutual Funds (9 Marks) Peter has bought 1,000 units in each of the following funds at the beginning of this year. Each of the funds performed well during the year and posted the following NAVPUS on December 14/21: Number of Units Date: December 14/21 IFSE Bond Fund 1,000 1,000 IFSE Balanced Fund IFSE Global Growth 1,000 Fund I Total Price December 15, 2021 IFSE Bond Fund IFSE Balanced Fund IFSE Global Growth Fund $11.50 $18.75 $27.69 Value On December 15th, 2021, each of the funds declared the following distributions: Distribution per unit $1 $2 $3 $11,500 $18,750 $27,690 $57,940 Peter decided to re-invest the distributions of the Bond Fund and the Balanced Fund, but decided to take distribution in cash on his Global Growth Fund. REQUIRED: a. Calculate how much investment income will be distributed to Peter from each investment on December 15th. (3 Marks) b. Calculate the NAVPU for each holding AFTER the distribution. (3 Marks) c. Would there be a difference in the tax payable if Peter would have decided to reinvest all of the distributions rather than take cash? Please explain your answer. (3 Marks) QUESTION #1 CHAPTER #7 Distributions From Mutual Funds (9 Marks) Peter has bought 1,000 units in each of the following funds at the beginning of this year. Each of the funds performed well during the year and posted the following NAVPUS on December 14/21: Number of Units Date: December 14/21 IFSE Bond Fund 1,000 1,000 IFSE Balanced Fund IFSE Global Growth 1,000 Fund I Total Price December 15, 2021 IFSE Bond Fund IFSE Balanced Fund IFSE Global Growth Fund $11.50 $18.75 $27.69 Value On December 15th, 2021, each of the funds declared the following distributions: Distribution per unit $1 $2 $3 $11,500 $18,750 $27,690 $57,940 Peter decided to re-invest the distributions of the Bond Fund and the Balanced Fund, but decided to take distribution in cash on his Global Growth Fund. REQUIRED: a. Calculate how much investment income will be distributed to Peter from each investment on December 15th. (3 Marks) b. Calculate the NAVPU for each holding AFTER the distribution. (3 Marks) c. Would there be a difference in the tax payable if Peter would have decided to reinvest all of the distributions rather than take cash? Please explain your answer. (3 Marks)
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a Calculate how much investment income will be distributed to Peter from each investment on December 15th 3 Marks Computing the Value of the portfolio ... View the full answer
Related Book For
Business Law Today The Essentials
ISBN: 978-0324786156
9th Edition
Authors: Roger LeRoy Miller, Gaylord A. Jentz
Posted Date:
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